Capitalab Improves FX Optimization Service with Sophisticated Focus on RWA and SA-CCR



LONDON, June 8, 2021 / PRNewswire / – Capitalab, a division of BGC Brokers LP, part of the BGC Partners, Inc. (NASDAQ: BGCP) group of companies, today announced improvements to its Capitalab FX, with CLS optimization service, which uses FX trade data provided by CLS. The service focuses on Risk Weighted Assets (RWA) according to the Internal Models Method (IMM) and the Standardized Approach for Counterparty Credit Risk Calculations (SA-CCR), bringing new ways to optimize capital for clients before and after adopting SA-CCR.

Capitalab’s innovative new offering is powered by proprietary technology, where participants target various metrics in a unified optimization cycle combining compression and risk balancing technologies.

David Bachelier, Capitalab’s Singaporeco-founder, said: “Additional metrics available to optimize include RWA IMM SA-CCR exposures and add-ons, enabling clients to be at the forefront of preparations for the game-changing SA-CCR regulatory framework, while optimizing their current and future capital requirements.

Gavin jackson, Capitalab’s Londonco-founder, added: “Capitalab has successfully executed the third round of live optimization of its Capitalab FX, with CLS service, with more emphasis on RWA IMM and SA-CCR. Our second cycle was about six times larger than the pilot test, and this third cycle saw a further improvement in efficiency of over 50%, with about $ 50 billion gross notional eliminated per participant, and improvements typically between 30-40% on metrics targeted individually by participants, in a unified cycle, with some reaching more than 80 billion dollars notional compression and 55% reduction in their target metrics. Connectivity to CLS has resulted in light execution from an operational standpoint, and we look forward to leveraging this collaboration within the forex market. “

Adrien hudd, Global Head of G10 FX Swap Trading at BNP Paribas, said: “We are delighted to further strengthen our partnership with Capitalab by participating in their new multilateral currency swap compression service. the lightweight bespoke compression frame provided by Capitalab will certainly bring additional efficiency gains to the market. “

About Capitalab

Capitalab, a division of BGC Brokers LP, provides compression services designed to bring greater financial and operational efficiency to the global derivatives market. He helps clients manage the growing cost of owning derivatives, while helping them fulfill their regulatory mandates. Thanks to the Swaptioniser® service of portfolio compression of interest rate swaps, interest rate swaps, ceilings and floors, stock options, foreign exchange and foreign exchange options, as well as the service Optimizing initial margin and fully automated transaction processing, Capitalab seeks to simplify the complexities of managing large amounts of derivatives to promote sustainable growth and reduce systemic risk and to improve the resilience of the industry. The Capitalab brand is part of the Fenics fully electronic family of brands. BGC Brokers LP is authorized and regulated by the UK Financial Conduct Authority and is based in London. BGC Brokers LP is a subsidiary of BGC Partners, Inc. (NASDAQ: BGCP), one of the world’s leading brokerage and financial technology companies.

About BGC Partners, Inc.

BGC Partners, Inc. (“BGC”) is a leading global brokerage and financial technology firm. BGC specializes in the brokerage of a wide range of products, including fixed income securities (rate and credit), foreign exchange, stocks, energy and commodities, shipping, insurance and contracts. in the long term. BGC also provides a wide variety of services including trade execution, brokerage, clearing, trade compression, post trade, information and other back office services to a wide range of businesses. financial and non-financial institutions. Through brands such as Fenics, BGC Trader, Capitalab, Lucera and Fenics Market Data, BGC offers financial technology solutions, market data and analysis related to many financial instruments and markets. BGC, BGC Trader, GFI, Fenics, Fenics Market Data, Capitalab, Lucera, Corant Global, Corant and Piiq are trademarks / service marks and / or registered trademarks / service marks of BGC and / or its affiliates .

BGC’s clients include many of the world’s largest banks, brokers, investment banks, trading firms, hedge funds, governments, corporations and investment firms. BGC Class A common shares trade on the NASDAQ Global Select Market under the symbol “BGCP”. BGC is chaired by the Chairman of the Board and Chief Executive Officer Howard W. Lutnick. For more information, please visit http://www.bgcpartners.com. You can also follow BGC on https://twitter.com/bgcpartners, https://www.linkedin.com/company/bgc-partners and or http://ir.bgcpartners.com/Investors/default.aspx.

Discussion of forward-looking statements about BGC

Statements contained in this document concerning BGC that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements regarding the effects of the COVID-19 pandemic on the business, results, financial condition, liquidity and prospects of the Company, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, perhaps materially, from what is currently expected. Except as required by law, BGC does not undertake to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in forward-looking statements, see BGC Securities and Exchange Commission filings, including, but not limited to , risk factors and the special note on Forward-looking information set out in these documents and any updates to these risk factors and the special note on forward-looking information contained in subsequent reports on Form 10-K, Form 10 -Q or form 8-K.

About CLS

Trusted by thousands of counterparties across the global FX ecosystem, CLS makes FX safer, smoother and more profitable. Billions of dollars of currency flow through our systems every day.

Created by the market for the market, our unparalleled global settlement infrastructure reduces systemic risk and provides standardization to participants in many of the world’s most actively traded currencies.

Our complementary products are designed to allow you to manage your risk as effectively as possible throughout the FX lifecycle, whether through more efficient processing tools or through market intelligence derived from the largest source. unique FX executed data available in the market. For more information visit clsgroupe.com.

Warning:

This communication is intended for CLS members who have professional investment experience. Any investment or investment activity to which this communication relates is only accessible to those CLS members or will only be undertaken with those CLS members. People who do not have professional investment experience should not rely on this communication.

Media contact at BGC Partners, Inc .:
Harjeet singh
+44 20 7894 8829

Investor contact at BGC Partners, Inc .:
Jason chryssicas
+1 212 610 2426

SOURCE BGC Partners, Inc.

Related links

http://www.bgcpartners.com





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